Facebook: A $300/Share Price
#1
Facebook: A $300/Share Price Is Closer Than You Think
May 20, 2020 11:50 AMFacebook, Inc. (FB)

Summary

  • Facebook has a fortress balance sheet and world-class financials. Its growth remains impressive.

  • The discounted cash flow valuation method suggests a 30% upside from its current price, with conservative assumptions.

  • Facebook's investments in Jio and Giphy further expand its reach.

  • While risks related to scrutiny remain, a multiple expansion along with FCF growth could easily justify a $300/share price by the end of the year.
My love for Facebook (FB) is undeniable. Over the past year, I have published a few very bullish articles on Facebook, as I have always seen it as a greatly undervalued stock. While shares have been heading towards all-time highs recently, I wanted to go back and reevaluate my past, greedy price target of $350/share.
Throughout this article, I will:
  • Briefly discuss Facebook's latest financials.
  • Explain why a $300/share price should not be far away, based on DCF valuation method
  • Discuss the stock's future outlook in regards to its recent acquisitions
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